Distribution & Supply chain
Management
Prof. Sameer Sonawane
Physical Distributions : Physical distribution
includes all the activities associated with the
supply of finished product at every step, from
the production line to the consumers.
Important physical distribution functions
include customer service, order processing,
inventory control, transportation and logistics,
and packaging and materials
Physical Distribution Management responsibility:
I. Transportation
II. Inventories
III. Packaging
IV. Warehousing
V. Material handling
VI. Location analysis
VII. Order Processing
VIII. Customer services
Channels of distributions :
Transportation : transportation is refer to the
movement of product from one location to
the another as it makes its way from the
beginning of supply chain to the customer .
This is most important in supply chain as
products are rarely produced and consumed
in same place.
Role Of Transportation In Supply Chain
Management
Raw materials
Supplier
Manufacturing
Consumer
Distribution
Inventory Control
Inventory is the raw materials, component
parts, work-in-process, or finished products
that are held at a location in the supply chain
Why do we care?
At the firm level:
Sales growth: right inventory at the right place
at the right time
Cost reduction: less money tied up in
inventory, inventory management,
obsolescence
Higher profit
Role of Inventory management in Distributions
Improve
Improve Matching
Matching of
of Supply
andSupply
Demand
and Demand
Improved
Forecasting
Cost Reduce Material Flow Availability
Efficiency Time Responsiveness
Reduce Waiting Time
Reduce Buffer Inventory
Supply / Demand
Economies of Variability Seasonal
Scale Variability
Cycle Inventory Safety Inventory Seasonal
Inventory
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Warehousing
Traditionally viewed as
a place to hold or store
inventory
Contemporary view is
the warehouse
functions to mix
inventory arrangements
to meet customer
requirements
Storage of products is
held to a minimum
Warehouse management
Figure 10.1 Consolidation and Break-Bulk Arrangements
Warehouse operations involve two
major activities handling and storage
Objective is to
Efficiently receive
inventory
Store it as required
Assemble it into
complete orders
Make a customer
shipment
Operations will
therefore emphasize
product flow
Handling
Handling must optimize
movement continuity
and efficiency
ReceivingUnloading the
arriving vehicles
In-Storagemoving
goods for storage
(transfer) or order
selection (picking)
Shippingverifying the
order and loading the
departing vehicles
Storage plans should make product
velocity a major factor
Slotting determines
specific locations for the
product based on
Velocityhow fast the
goods move
Weighthow heavy is
the product
Special Characteristics
how large or small, does
it require rack or bin
storage
Warehouse management
Inventory accuracy is typically
maintained by annual physical
counts or counting portions of
inventory on a planned basis
Cycle counting is the audit of
selected inventory on a cyclic
schedule
Audits are common to maintain
safety, assure compliance to
regulations and help improve
procedures
Security issues involve protection
from pilferage and damage
Warehouse management
Accident prevention
Comprehensive safety
programs and training,
accident investigation and
follow up
Environmental protection
Spill ( leak ) kits and spill
plans
Maintenance
Scheduled maintenance of
building, material handling
equipment, and collision
damage prevention
Unitization
It is the process of consolidation of several units
into single unit. It is made of a number of items
or a bulky material and is constrained to lifted
and shifted because it is too bulky to be moved
manually. Material handling cost decreases as the
size of the unit increases.
Using a carton would be more economical than
lifting items individually and combining several
cartons into a unit load would be even more
economical.
Unitization Example
At the time of transferring the purchased
components in the car we do not keep them
individually we place them in a bag. Similarly
unit loads are used in the industry .Pallet is an
example of a unit load device usually has a
dimension of 48X40X4 designed so that
several packages are placed on it. Several such
packages form a unit cube.
Role
inspecting, packing, palletizing and loading
